Weekly Market Update

9 September 2015

Fixed Deposit Rates (USD)

Tier
50k-99k
100k-499k
500k-999k
1 Million and
above

30 days
0.40
2.15
2.30

90 days
1.50
2.60
2.85

180 days
2.00
2.75
3.00

360 days
2.50
3.50
4.00

2.50

3.10

3.80

4.30

(Source: Fab Treasury)

Fixed Deposit Rates (EUR & GBP)
Currency
EUR
GBP

30 days
0.13
0.72

90 days
0.23
0.80

180 days
0.33
1.01

360 days
0.53
1.40

(Source: Fab Treasury)

Market Rates (from 7

th

to 9

th

September)

Currency
USDJPY
GBPUSD
EURUSD
AUDUSD

Open
Close
118.717 120.442
1.51593 1.53666
1.11426 1.12053
0.69121 0.70119
13.7212 13.7701
USDZAR
6
0
USDGHS
3.7200
3.9000
USDNGN
197.450 198.800
USDKES
105.500 105.250
(Source: Fab Trader Platform)

High
120.224
1.54110
1.12286
0.70375
13.9831
0
4.0154
199.250
106.700

Low
118.842
1.52651
1.11510
0.69199
13.6905
0
3.7000
198.900
104.800

Metals and Stocks (from 24th to 26th August)

Metal
Open
Close
High
Low
Silver
14.5682 14.6205 14.8680
14.4645
1,123.0
1,107.7
1,126.5
1,115.5
Gold
5
8
6
2
Stocks
1,925.4
1,941.4
1,969.
1,932.4
US 500
2
0
96
5
16,098.
16,250.
16,500.
16,190.
US 30 WS
2
4
2
1
6,081.2
6,154.2
6,198.7
6,069.7
UK 100
5
5
5
5
GERMANY
30

10,115.
70

10,161.
30

10,369.
20

10,090.
20

China Aug inflation edges up, but producer

prices tumble most in 6 years
China's consumer inflation in August edged up more
than expected from a year earlier, but producer prices
fell for the 42nd straight month in the latest sign that
deflation remains a significant risk for the world's
second-largest economy.
The consumer price index (CPI) rose 2.0 percent, the
National Bureau of Statistics said on Thursday, but
much of the increase appeared due to soaring food
prices, not an improvement in economic activity.
The producer price index (PPI), which represents
manufacturers' selling prices, fell 5.9 percent from a
year earlier, much worse than market expectations of
a 5.5 percent decline and compared with a 5.4 percent
drop in July.
The PPI decline was the sharpest since the depths of
the global financial crisis in 2009.

Analysts polled by Reuters had predicted August

consumer prices would rise 1.8 percent from a year
earlier, compared with 1.6 percent in July.
The consumer inflation reading remained well below
Beijing's 3 percent target for the year, giving
policymakers plenty of room to ease policy further to
support the cooling economy.
Other data from China in coming weeks is likely to
point to further weakness in the economy, reinforcing
expectations that Beijing needs to roll out fresh
stimulus measures and keeping global financial
markets on edge.
Imports fell much more than expected in August and
exports also contracted, data earlier this week
showed.
Fears of a China-led global slowdown have grown in
recent weeks after a series of grim factory activity
surveys.
The government is also still struggling to stabilise the
yuan after its surprise devaluation of the currency on
Aug. 11 and halt a stock market rout that has seen the
country's share indexes plunge 40 percent since midJune. (Source: reuters.com)
U.S. Stocks Advance as Weaker Dollar Sparks
Gains in Commodities
U.S. stocks rose amid light volumes a week before the
Federal Reserves policy decision. Apple Inc. led a rally
in technology shares, while a retreat in the dollar
sparked a surge in commodities from oil to metals.
The Standard & Poors 500 Index rebounded from a
selloff
yesterday
in
a
market
increasingly
characterized by sharp shifts in sentiment amid the
looming threat of higher interest rates. The dollar
slipped to a one-week low on speculation the Fed
wont act next week amid continued turbulence in
global financial markets. Oil surged past $45 a barrel
in New York.
While a second day of robust U.S. jobs data bolstered
the case for higher rates, money-market derivatives
traders see only a 28 percent chance of an increase at
next weeks meeting. The Bank of England said
turmoil in global markets hasnt upset its economic
outlook, fueling speculation the Fed could also look
past recent volatility.
People are on the sidelines and you get these violent
moves and you dont know whats behind them, Dan
McMahon, director of institutional equity trading at
Raymond James and Associates, said by phone.
Theres really no rhyme or reason so its very difficult
to make a rational decision in this kind of
environment. (Source: bloomberg.com)
Increased forex supply strengthens cedi
The Cedi has been in consolidation mode against all
the other major trading currencies last week, following
the Bank of Ghana's increased forex supply on the
currency market.
The decision to raise the amount of for eight exchange
pumped into the market was to help stabilise the local
currency, which has been on a depreciation gear over
the past few weeks.
The move caused the currency to appreciate by 9.78
per cent against the Dollar, rising from from GH4.05

Weekly Market Update

at the beginning of last week to GH3.70 on
September 4.
The cedi also rallied against the Euro and the Pound,
appreciating by 10.95 per cent and 11 per cent
respectively.
The Swiss Franc and the Rand also drifted against the
Cedi. The local currency appreciated by 11.01 per cent
against the Swiss Franc to GH3.79 and 13.04 per
cent against the South African Rand to GH0.27.
The stock market ended the first week of the month in
the red as declines in 11 equities saw the indices
drifting downwards. The week under review saw the
benchmark composite losing 55.01 points to 2,100.42
points. This brought its year-to-date change to
negative 7.10 per cent.The Financial Stocks Index also

9 September 2015
closed lower, dropping 61.70 points to 2,077.90 pots.
Its year-to-date return, thus declined to negative 7.39
per cent.
Fan Milk gained 4GHp to close at GH5.99. Starwin
Products and Unilever also went up by a pesewa each
to 4GHp and GH7.41 respectively. On the other hand,
11 equities retreated. Stanchart dipped 27GHp to GH
16.71; Guinness Ghana and Unilever lost 14GHp and
12GHp to GH2.20 and GH1.78 respectively. CAL
Bank and Ecobank Ghana also decreased by 10GHp
and 5GHp to 85GHp and GH8.00 respectively.
(Source: ghanaweb.com)

(Source: Fab Trader Platform)

EUR/USD: EUR looks to strengthen further following a strong bullish offensive during Wednesday
trading session. A follow-through higher on that gain is expected to create scope for more recovery
with eyes on its key resistance at 1.1331 level.

(Source: Fab Trader Platform)

USD/JPY: The strongest move in the JPN225 since 2008 has given the highly correlated USDJPY a
clean bid into pattern resistance. USDJPY currently sits fixed between 121.85 and 118.50 after the
August 24th fallout. The price pattern currently favors a wedge, which favors a continuation in the
direction of the move prior to the wedge or lower, but the long-term trend keeps the preference on
an upside break.

Weekly Market Update

9 September 2015